The Price Of WTI Crude Oil Takes A Pounding

Oil prices took a beating today, with the price of West Texas Intermediate crude at one point dropping below $79 a barrel. That may not translate into significantly lower gas prices any time soon.

With the number of Houston businesses and jobs that depend on the oil industry, falling crude prices are always a reason for concern. But at least that means a break for consumers at the pump, right?

“The popular saying in the retail gasoline business is, ‘Prices go up like a rocket, but they come down like a feather.’”

Tim Evans is an energy analyst with Citigroup.

“I would think we’ll start to see those prices weakening, but we won’t see the full price drop feed through probably until we get into September.”

The Energy Information Agency downgraded its forecast of gasoline prices today in the wake of falling crude prices. The agency projects a gallon of regular will average $3.58 in the third quarter of 2011 and $3.44 in the fourth quarter. Both estimates are six cents down from the agency’s previous forecast last month.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...